Cpl. Todd McDougal with Kings Mountain Police Department, who was also targeted, said banks are going to cover the losses.

He said federal investigators are handling the case.

McDougal said he was told a computer system is being used to "mine" into people's accounts and gather personal information. McDougal said the thief then recreates the person's card and uses it to either purchase items or gift cards.

"Mine was out in California," he said of where his number was used. "I bought two pairs of Timberland boots in California."

The Star contacted the Charlotte division of the Federal Bureau of Investigation, but a spokeswoman said in an email that the FBI cannot confirm or deny the existence of investigations per department policy.

'We don't know where it's coming from'

Lebarbara Southern, branch manager of the State Employee Credit Union on York Road in Kings Mountain, said customers were re-issued debit cards and sent letters.

"We don't know where it's coming from," Southern said of the theft. "It's all financial institutions. Wells Fargo, SunTrust, not just the credit union."

She said the credit union did the proactive thing and reissued cards to most customers in the area.

"We just re-issued, whether they were involved or not to prevent it," Southern said. "Somehow card numbers were being compromised. We don't know how they were getting the card numbers. Most likely from a scanner."

Scanning devices can be placed over card readers to record the numbers.

The Credit Union declined to send a copy of the letter it issued its customers, and attempts to contact the head of card services were not successful Wednesday.

Sheriff: Some purchases more difficult to trace

Sheriff Alan Norman said a deputy with the Cleveland County Sheriff's Office was also a victim.

He said the deputy filed a report after his bank account was drained of all funds Sunday night.

Norman said an investigation revealed someone took the numbers from the deputy's debit card after he used it locally and sold the numbers to an organization in Maryland.

The number was used to buy gift cards, Norman said, which are more difficult to trace.

"We did the initial report. In turn, he also filed a report in the Maryland area," Norman said.

He said the crime organization is loose-knit and is distributing credit and debit card numbers up and down the eastern seaboard, and even as far as California.

Tips to protect credit/debit card information

-Use cash at businesses where PINs are not required when using debit cards.

-Be aware when using cards at gas stations and become familiar with the card reader. Devices can be placed over the access point that then record the card number.